Jason Cohen is a Pittsburgh-based real estate investor and entrepreneur who has stood out in the local real estate market for over a decade. He founded Jason Cohen Pittsburgh, a unique outlet for real estate enthusiasts who want to help others through complex investment decisions. Jason has dealt with properties (especially multifamily housing) in a variety of neighborhoods throughout parts of Pittsburgh.

Thursday, December 26, 2013

Home Improvements that Don’t Add a Lot of Value to Real Estate Investors

The housing market is slowly recovering. Real estate
investors are having success again. But it’s still a buyer’s market. Homebuyers
are more cautious now. They know better. They’re not going to spring for the
luxuries that they may have before the Recession. They know what they can
afford.

It’s time for real estate investors to make sensible
improvements that add real value, not add luxurious unnecessary features to
entice buyers who may be trying to live beyond their means. Banks have wised up
and are stricter with their lending. So, just like the homebuyer, a real estate
investor should be cautious with their renovations. When flipping property, the
following “improvements” should probably be avoided:

Creating a Home Office.

Sure, telecommuting is getting to be a more viable option
every day, but home offices tend to offer less than a 50% recoup on
installation expenses. They’re not for everyone — some buyers may see more
value in the space as an extra bedroom — so it doesn’t make too much sense to
add it to an investment property.

Adding a sunroom.

Again, not for everyone. Some people may not think that a
solarium is a necessity. Some may not know what a solarium is. Either way, it’s
not the best investment.

Adding a bathroom.

Though it may seem like a huge selling point, it’s usually
not. The amount of money you’d have to add to your selling price to recoup your
investment in adding a bathroom may scare away buyers who see it as a luxury
that they’re not willing to pay for.

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About Me

A third-generation real estate investor in Pittsburgh, Pennsylvania, Jason Cohen of Jason Cohen Pittsburgh builds upon a strong history in the field of distressed multifamily properties with an emphasis on high-tech advancements such as Internet ACH rent payment and a comprehensive online portal that offers services such as digital maintenance requests. His professional interests include acquiring mismanaged and/or dilapidated apartment complexes and making a series of structural and organizational improvements to boost overall resident service. Over the course of a decade, he has renovated and sold struggling properties, capitalizing on a niche market known as value-add investing. As the head of Jason Cohen Pittsburgh, he consults other real estate investors realize their full potential through a range of custom investment strategies.

When he isn’t working, Mr. Cohen enjoys swimming and boating with his family. He is also an avid animal lover who supports the Animal Rescue League and sponsors the Yappy Hour and other pet-friendly social events through his company while welcoming pets at all of his properties.